Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study
This study aims to analyze the determinants of systemic risk in Islamic and conventional banks. The population of this research is Islamic and conventional banks, which are listed on the Indonesia Stock Exchange. Researchers used purposive sampling to ensure the suitability of the sample with the re...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Sciendo
2022-04-01
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| Series: | Studies in Business and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sbe-2022-0014 |
| _version_ | 1828224107538284544 |
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| author | Fitri Rahmadana Muhammad Hafiz Sagala Gaffar |
| author_facet | Fitri Rahmadana Muhammad Hafiz Sagala Gaffar |
| author_sort | Fitri Rahmadana Muhammad |
| collection | DOAJ |
| description | This study aims to analyze the determinants of systemic risk in Islamic and conventional banks. The population of this research is Islamic and conventional banks, which are listed on the Indonesia Stock Exchange. Researchers used purposive sampling to ensure the suitability of the sample with the research objectives. Furthermore, we use secondary data obtained from financial databases such as Yahoo Finance and the Indonesia Stock Exchange. This study adopts the systemic risk measurement offered by Fiordelisi and Marquez-Ibanez (2013). The determinants of systemic risk were explored from the six independent variables, namely the bank efficiency, business model, size, interest rate, GDP, and bank categories (Islamic or conventional). Data analysis was performed with panel data regression. The results indicate that size is the critical factor in determining potential systemic risk for banks, both Islamic and conventional banks. This study contributes theoretically in constructing theoretical frameworks related to the stability and resilience of Islamic banks in comparison with conventional banks. Practically this study seeks to produce recommendations for improvement of Islamic banking financial governance as an alternative to conventional banking. |
| first_indexed | 2024-04-12T17:16:17Z |
| format | Article |
| id | doaj.art-cbe015c4ecde471bbb434ef651e091e2 |
| institution | Directory Open Access Journal |
| issn | 2344-5416 |
| language | English |
| last_indexed | 2024-04-12T17:16:17Z |
| publishDate | 2022-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj.art-cbe015c4ecde471bbb434ef651e091e22022-12-22T03:23:38ZengSciendoStudies in Business and Economics2344-54162022-04-0117120221710.2478/sbe-2022-0014Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary StudyFitri Rahmadana Muhammad0Hafiz Sagala Gaffar1Universitas Negeri Medan, Sumatera Utara, IndonesiaUniversitas Negeri Medan, Sumatera Utara, IndonesiaThis study aims to analyze the determinants of systemic risk in Islamic and conventional banks. The population of this research is Islamic and conventional banks, which are listed on the Indonesia Stock Exchange. Researchers used purposive sampling to ensure the suitability of the sample with the research objectives. Furthermore, we use secondary data obtained from financial databases such as Yahoo Finance and the Indonesia Stock Exchange. This study adopts the systemic risk measurement offered by Fiordelisi and Marquez-Ibanez (2013). The determinants of systemic risk were explored from the six independent variables, namely the bank efficiency, business model, size, interest rate, GDP, and bank categories (Islamic or conventional). Data analysis was performed with panel data regression. The results indicate that size is the critical factor in determining potential systemic risk for banks, both Islamic and conventional banks. This study contributes theoretically in constructing theoretical frameworks related to the stability and resilience of Islamic banks in comparison with conventional banks. Practically this study seeks to produce recommendations for improvement of Islamic banking financial governance as an alternative to conventional banking.https://doi.org/10.2478/sbe-2022-0014financialfailuresystemic riskislamic banking |
| spellingShingle | Fitri Rahmadana Muhammad Hafiz Sagala Gaffar Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study Studies in Business and Economics financial failure systemic risk islamic banking |
| title | Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study |
| title_full | Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study |
| title_fullStr | Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study |
| title_full_unstemmed | Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study |
| title_short | Determinants Analysis of Islamic and Conventional Banks Systemic Risk Potentiality: A Preliminary Study |
| title_sort | determinants analysis of islamic and conventional banks systemic risk potentiality a preliminary study |
| topic | financial failure systemic risk islamic banking |
| url | https://doi.org/10.2478/sbe-2022-0014 |
| work_keys_str_mv | AT fitrirahmadanamuhammad determinantsanalysisofislamicandconventionalbankssystemicriskpotentialityapreliminarystudy AT hafizsagalagaffar determinantsanalysisofislamicandconventionalbankssystemicriskpotentialityapreliminarystudy |